Judge approves Anchor BanCorp's Chapter 11 bankruptcy

Anchor BanCorp Wisconsin Inc., the parent company of Anchor Bank, will move ahead with a chapter 11 reorganization after getting approval from a federal bankruptcy judge Aug. 30, according to a story in the Business Journal.

Anchor BanCorp filed for Chapter 11 Aug. 13.

According to the story, the company will pay $49 million on a $186 million debt to U.S. Bank, Bank of America and Associated Bank. Anchor BanCorp will also be allowed to reduce its $139million debt to the U.S. Treasury to a 3.3 percent equity in the reorganized company.

The company will also cancel shares, leaving shareholders with nothing.